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If you’re looking to buy a home in Virginia, there are plenty of programs available to help you. You don’t need a strong credit history to qualify for a NADL. You also won’t have to purchase private mortgage insurance, a benefit that extends from normal VA loans as well. Most NADLs even come with significantly lowered closing costs. A Virginia Housing loan doesn’t let you borrow as much as Virginia DHCD. It usually offers 2% (sometimes 2.5%) of your next home’s purchase price.
Before you buy a home in Old Dominion, you may want to consider some of the mortgage programs that make it easier to get a mortgage. Options from both the federal and Virginia state governments help make homeownership more accessible and affordable. If you need help, consider looking over the options listed below and consider working with a financial advisor to help decide which is best for you. The City of Virginia Beach also has a down payment assistance program of its own. Qualify for down payment assistance or, if a veteran seeking a VA loan, a closing cost assistance grant.” Visit the above link for more information.
Reston Valley Way, Unit 5 - DRAWING CLOSED
Of course, few first-time buyers have saved enough for 20% down. If you're eligible for a VA loan or a USDA loan (backed by the U.S. Department of Agriculture), you may not need any down payment at all. The median home price in Virginia was $365,000 in October 2022. That was an increase of 4.3% year-over-year, according to data from the Virginia Association of Realtors. Because of this, we at Veterans Anonymous have compiled a directory of real estate agents who specialize in helping military families find the right home for them.
If you’re buying your first home in Virginia, you’ll want to know about the Virginia Housing Development Authority . It offers 30-year fixed-rate loans through a statewide network of approved mortgage lenders in addition to forgivable down payment grants and federal tax breaks. Some of these programs even eliminate the need for a down payment. But there’s good news for first-time homebuyers looking for a home in Virginia.
VHDA Mortgage Credit Certificate
Along with a variety of special mortgage loans, Virginia first-time home buyers can access a number of down payment and closing cost assistance options. Virginia Housing offers plenty of help to both first-time and repeat buyers, including counseling, special mortgage loans, and down payment and closing cost assistance. This home is also eligible for reduced mortgage interest rate financing through the Virginia Housing Sponsoring Partnerships & Revitalizing Communities program. To qualify for SPARC and/or City financing, participants must complete a Virginia Housing-sponsored homebuyer training class, followed by a two-hour individual counseling session. Click here for more information on Virginia Housing free homebuyer resources. In addition, a buyer may qualify for up to a $4,000 seller subsidy.

Owning your home provides security, stability for your family, and helps you to build personal wealth. It’s important to us that you understand your rights as a purchaser, that you are aware of the pitfalls, and are able to financially manage paying your mortgage for years to come. We offer free help, including one-on-one pre-purchase counseling, group classes taught by industry professionals, money management tools, credit recovery classes, and more. There is also a NeighborWorks Second Mortgage Loan Program that provides between 6 and 8 percent of your home’s purchase price in a loan that’s deferred until you sell your home or decide to refinance it. The Virginia Housing Development Authority has aroster of programsthat help first-time homebuyers as well as repeat homebuyers or those buying in a targeted area.
Virginia Housing Down Payment Assistance
The HOME program is aimed at helping first-time homebuyers with down payment and closing cost assistance in the form of a forgivable, no interest and no monthly payment second mortgage. To qualify, you must use the home as your primary residence and stick to income and purchase price limits. Virginia Housing also offers a down payment assistance grant program, which gifts eligible homebuyers with between 2 and 2.5 percent of the home’s purchase price.
Pair these benefits with those of your VHDA loan and you could save some serious cash. Must remain in the home for at least three years after purchase Best For – Teachers and public servants with little savings The Good Neighbor Next Door Program from the U.S. Department of Housing and Urban Development is more of a discount than a loan.
Choose a Loan Type
The Virginia Individual Development Accounts program helps qualified individuals save for a down payment on a home. Eligible participants receive training, support and match funding on their savings. The current match rate is $8 for every $1 the participant saves, up to $4,000 in match. Manufactured housing is an important source of affordable housing for Virginians. Check outthe program’s official webpageandeligibility requirements. You only need a 3 percent down payment, or even less if you opt into the second mortgage program — more details on that below.
Real estate prices have been rising in the Old Dominion state, which can often put home buyers under pressure. Luckily, if you’re a first-time buyer in Virginia, there’s plenty of help available. That ranges from advice and home buyer education courses to cash grants or loans to help you out with your down payment.
Alexandria provides closing cost and down payment assistance for first-time homebuyers through itsFlexible Homeownership Assistance Program. It provides up to $50,000 in funding — the amount you’re eligible for is based on your gross household income, family size and financial need. The funding is provided as a zero interest second mortgage that you’ll repay only when you pay off your mortgage or sell your home.
Specific documents will be requested and must be received prior to the appointment. During the appointment you will discuss your financial situation, what you will need to do to become fully ready to purchase a home, and how much of a mortgage loan your budget can accommodate. Also, if you need and qualify for down payment and closing cost financial assistance, you will learn how to access that money. An MCC allows homeowners to claim 20% of their annual mortgage interest as a dollar-for-dollar federal tax credit.
Virginia Housing’s conventional home loans program is the organization’s flagship resource, providing 30-year fixed-interest rate loans with the lowest available mortgage insurance payments. The program comes with the option to use flexible down payment sources, like cash gifts from relatives or Virginia Housing’s own second mortgage and down payment assistance programs. The program also offers aconventional loan without mortgage insurance.

The down payment assistance is provided in the form of a grant with a mandatory “affordability period” for the applicant to continue to occupy the house as their primary residence. An income eligible homebuyer may receive up to 10 percent or 15 percent of the sales price, plus up to $2,500 to pay for the cost of closing (e.g. attorney’s fee, title insurance, taxes as needs demand). Virginia Housing offers closing cost assistance in the form of a grant worth up to 2 percent of your home’s purchase price, and you never have to pay the money back. You must apply for a VA or RHS first mortgage via a lender partnered with Virginia Housing.
Resale Restricted Workforce Affordable Units
” There are a number of factors that go into landing yourself a mortgage payment that you can manage. That means, if the home is $250,000, a traditional lender would require $12,500 down and an FHA lender would require $8,700. Knocking that number down to $0 allows service members and veterans an opportunity to buy a home they otherwise might not have had. Provide required documentation on behalf of borrower to City staff/Virginia Housing to reserve the necessary SPARC funds for individual home purchases . Purchased home must be located within the corporate limits of the City of Alexandria. View a list of City departments, offices and other agencies, and learn about their role in the organization.
Eligible purchasers may receive a City shared-equity loan of up to $50,000 through the City’s Flexible Homeownership Assistance Program. Selected purchasers should be prepared to offer an earnest money deposit of $2,000 at the time of signing the purchase agreement. They are also expected to secure mortgage financing from one of the lenders currently participating in the City's homeownership program. Browse through our frequent homebuyer questions to learn the ins and outs of this government backed loan program.